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Statement of Intent 2014-2019

Outcome: A Higher Performing State Sector that New Zealanders Trust, Delivering Outstanding Results and Value for Money

The State sector has a significant impact on the living standards of New Zealanders through the rules it makes, services it provides and assets it owns. The State sector needs to have a clear focus on achieving outstanding results for New Zealanders. This needs to be achieved in a way that delivers value for money and is affordable to New Zealand now and in the future[3].

The State sector needs to better target and personalise its services (customer focus) and take more of a population-based approach to the provision of services. While New Zealand does well on a number of Living Standards measures there are groups within society that struggle with persistent disadvantage.

The State sector also needs to get better at shifting expenditure away from the areas that deliver short-term benefits to the areas that will deliver longer-term benefits; for example, by focusing on getting people into work as opposed to providing income support[4].

In order to deliver outstanding results and value for money the State sector needs to be focused on outcomes and:

  • to be aligned and organised to achieve a core set of critical, measurable priorities (currently the Better Public Services results[5])
  • to proactively work together and collaborate around these priorities
  • for agencies to understand their purpose and who else they need to work with to achieve it
  • to design services with and for those who use them, and organised around their needs and expectations
  • to make better use of data to inform decision-making
  • to have stronger cross-agency leadership of key aspects of the system; for example, in key functional areas (ICT, procurement, property, finance)
  • to deliver services with high levels of integrity and improved levels of trust
  • to deliver improved stewardship of agencies and resources
  • to improve the effectiveness and efficiency of Crown expenditure
  • to own the right assets, manage them and fund them sustainably
  • to manage risk proactively while innovating
  • to demonstrate continuous improvement and innovation.

What is "value for money"

In its capacity as a finance ministry, the Treasury is focused on understanding agencies' performance - how effectively and efficiently they are delivering the results the Government has set for them - so that we can advise and act on it. The Treasury has identified this as an area where it needs to improve its performance in working with agencies.

We have developed a four-tier performance framework which will provide metrics for how we consistently measure agencies' performance. The tiers measure performance in four areas: controls and monitoring; outlook and sustainability; efficiency; and effectiveness. As we develop these measures in conjunction with other agencies, it will provide us with a more comprehensive picture of how well the State sector is delivering value for money.


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